Condo Conversions

Q: I have two months left on my current lease. I have been hearing that my rental apartment buildings are being converted to condominium ownership. I am concerned since we have a new owner of the building who has purchased apartment buildings and is converting them to condominiums. Will I have to move suddenly? If the building goes to sale as condominiums and someone purchases my unit, what happens if I have a lease that runs past the closing date? What are my choices on breaking the lease at the time of closing? Last week the new owner's management company offered a new one-year lease to be signed by me at the time of closing. Could I leave or must I stay?

A: Since your lease is expiring in two months, you have the option of leaving then or accepting the new owner's offer of the one-year lease. It appears that the new owner is not planning an immediate conversion of your apartment building to condominiums as they offered you a one-year lease. That new lease must be honored not only by the new owner that signed the lease with you but also any future owners whether the building is converted to condominiums and sold unit-by-unit or the entire building is sold as an apartment building. It is really up to you whether you want to just stick with the current lease for the next two months and then leave or if you will accept the new 12-month lease signed by the incoming owner that legally protects you for at least 12 months of occupancy. Another factor to keep in mind is that many owners are required to give extended notices or even moving allowances to current tenants when apartment buildings are converted to condos, plus you may have an opportunity to purchase the unit yourself if it is converted to individual condominium units. Often these units are available under favorable terms as the condominium converter can pass along some of their savings in marketing and commissions if they sell to the current tenants.

Posted by Donald Urschalitz P.A. at July 13, 2005 06:53 PM